PM's plan for building watchdog in doubt

James Massola, Nick McKenzie, Richard Baker

Said his government had "deep concerns about the illegality, about rorts, rackets and rip-offs inside a number of unions": Prime Minister Tony Abbott. Photo: Jonathan Ng

Prime Minister Tony Abbott's plan to restore the building industry watchdog, a key plank of the government's workplace reform policy, faces an uncertain path through the new Senate with just two of the eight Senate crossbenchers prepared to pledge their vote to restoring the Australian Building and Construction Commission (ABCC).

Employment Minister Eric Abetz called on the new Senate to urgently back laws to restore the full powers of the ABCC, describing it as a ''very high priority for the government'' after fresh revelations of construction union standover tactics and links to the underworld.

"A corruption commission I would support ... But I don't believe corruption is only a union movement": DLP senator John Madigan. Photo: Alex Ellinghausen

Fairfax Media revealed evidence from the developer of Victoria's Pentridge prison site, Peter Chiavaroli, of back-room deals involving union officials and underworld figures including an allegation that, in late 2009, Victorian Construction, Forestry, Mining and Energy Union chief John Setka demanded the employment of one of his friends, Anton Sucic, as part of a campaign to unionise the site and place it under CFMEU control.

Senator Abetz also questioned the links between Victorian Labor leader Daniel Andrews and the CFMEU and the decision to strip the ABCC of powers, taken by Julia Gillard and Bill Shorten when Labor was in government.

On Thursday, Mr Abbott said his government had ''deep concerns about the illegality, about rorts, rackets and rip-offs inside a number of unions''.

''I think Bill Shorten is really letting his party down by being as critical of the royal commission as he's being,'' Mr Abbott said.

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Mr Shorten declined to comment on Victorian Labor's close links to the CFMEU but backed Mr Andrews to win the state election.

''I have said in the past that this royal commission will be a platform for people to settle scores, there will be lots of evidence, some of it will be right, some will be wrong, and it really wouldn't be appropriate for me to be commenting on every day,'' he said.

Family First senator Bob Day told Fairfax Media that he was ''100 per cent behind'' the restoration of the watchdog's full powers, which include the power to compel witnesses to give evidence, tougher rules for unlawful industrial action and tougher penalties.

Mr Day's ally, Liberal Democratic senator David Leyonhjelm, said he had some concerns about the bill but would likely support it.

However, independent senator Nick Xenophon said he had some concerns about the bill ''singling out a particular industry, but I am trying to keep an open mind on it''.

Democratic Labour Party senator John Madigan criticised the bill for singling out unions that may be engaged in illegal behaviour while not addressing businesses that broke the law.

''A corruption commission I would support,'' he said. ''But I don't believe corruption is only in the union movement''

Palmer United Party leader Clive Palmer said he and his senators ''hadn't looked at it yet'' and had not yet taken a position.

Mr Palmer, who missed the vote to restore the ABCC in December, said he was unaware that the bill had even entered the Senate in February.